FIRPTA stands for the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA). The disposition of a U.S. real property interest by a foreign person (the transferor) is subject FIRPTA income tax withholding. Both buyers and sellers of a FIRPTA transaction are required to submit forms to the IRS. Therefore, both the buyers and the sellers of a transaction subject to FIRPTA withholding should consult with their respective accountants and attorneys to ensure they have appropriately satisfied their FIRPTA withholding requirements.
-Emily A. Helmick, Esq.